At the conclusion of the Imperial Civil War, in which Merkatz and Schneider were on the losing side, Schneider foresaw his superior's plans to honorably commit suicide instead of breaking his oath of loyalty to the faltering Goldenbaum Dynasty. Schneider stopped Admiral Merkatz, convincing him that his sidearm had been unloaded (when in reality it had not been). He also succeeded in convincing Merkatz to seek asylum in the Free Planets Alliance, specifically at Iserlohn Fortress under the command of famed Alliance hero Yang Wen-li. Schneider passionately defended Merkatz's honour and merit, while also convincing Yang and the other Alliance officers to treat him as an honored guest, worthy of status befitting his rank of High Admiral. (LOGH: 'The Fall of Goldenbaum', 'The Fall of Goldenbaum')

Alliance and government-in-exile

Schneider and Merkatz were initially based at Iserlohn as part of the Iserlohn Garrison Fleet, where they often advised Admiral Yang and sometimes would take command of the fleet during operations. Schneider was present for the attack of the mobilized Geiersburg Fortress under Admiral Karl Gustav Kempff. During the battle, he was with Merkatz when the high admiral took command of the Alliance fleet and engaged the Müller Fleet outside of Iserlohn. The engagement resulted in an Alliance victory, with the destruction of Geiersburg. (LOGH: 'First Battle', 'Fortress vs Fortress')

After the abduction of Kaiser Erwin Josef II and the formation of the Galactic Empire Legitimate Government in 798 UC(489 IC / 3598 CE), Schneider became part of the government-in-exile's military, along with Merkatz, who was its minister of military affairs. He personally did not have a good opinion of the government-in-exile, noting that there were no troops under their command and that "Minister of Military Affairs of the Legitimate Government" was merely an empty title. Although both he and the admiral had their misgivings, they had no choice in the matter and departed from Iserlohn along with Julian Minci (who was appointed military attache on Fezzan) to Heinessen, where they met with the government-in-exile cabinet. (LOGH: 'The Arrow Is Released', 'A Departure')

Schneider was seen with Merkatz at the Legitimate Government headquarters building on the Alliance capital. He was promoted to commander under the government-in-exile, but later told Minci before his departure to Fezzan that they had no way of effectively countering Lohengramm with just an exiled government. Schneider also tried to get Minci to join them, but the Alliance ensign did not take up the offer. Shortly before Operation Ragnarok, he spoke with Leopold Schumacher, who wanted to see Merkatz. Schneider departed from Heinessen in February 799 UC(1 NIC / 490 IC / 3599 CE) with Merkatz to take part in the upcoming battle against Lohengramm's Imperial Fleet, along with five enlisted personnel that comprised the legitimate government's military. (LOGH: 'Operation: Ragnarök', 'The Cold Spell Arrives', 'The Darkness Before Dawn')

He was present with the Yang Fleet as it raided Imperial supply lines and defeated individual Imperial fleets. Schneider later took part along with Merkatz in the nearly-successful Battle of Vermillion in April-May 799 UC(1 NIC / 490 IC / 3599 CE). Schneider left the Alliance fleet afterwards with the high admiral and 60 ships as part of a plan to start a cell that would carry on the fight against the Empire after the Alliance's surrender. (LOGH: 'Battle After Battle', 'The Battle of Vermilion (Part Two)', 'Sudden Change')

Resistance force

As part of a resistance cell based out of the Dayan Khan asteroid supply base, he assisted Merkatz in leading and expanding their fleet. In July of 799 UC(1 NIC / 490 IC / 3599 CE), their force raided an Alliance force that was decommissioning a number of battleships and carriers as part of the Treaty of Barlat. Schneider reported that they took 464 battleships and 80 carriers, as well as caused many defections to their side. (LOGH: 'After the Ceremony, the Curtain Rises Again...', 'The Magician Is Captured')

Iserlohn Republic

Schneider continued to serve Merkatz until the flagship Hyperion was crippled during the Battle of Shiva, the last recorded conflict in the galaxy. Unfortunately for the Iserlohn Republic, the Hyperion, which had never been damaged despite service in three separate conflicts and numerous battles, was hit multiple times by High Admiral Bittenfeld's Black Lancers, which were ferociously charging due to confusion in the Imperial force because of the Kaiser's condition. The shields of the Hyperion were overwhelmed and the resulting internal explosions mortally wounded Merkatz who said his last words to Schnieder on the ship's burning bridge. (LOGH: 'The Beautiful Maiden Wants Blood')

After the ceasefire, Schneider was presumably given a full Imperial pardon as he discussed with Julian Mintz his plans to return to the Empire in order to return Merkatz's remains to his family, thus completing his final duties to his deceased superior officer. (LOGH: 'The Golden Lion Flag Loses Its Lustre')